Variable Overhead Spending Variances Can Result from Unattainable Variable Allocation

question 35

Multiple Choice

Variable overhead spending variances can result from unattainable variable allocation rates. In turn, those rates may be caused by:
I. Inappropriate allocation bases
II. Poor estimates of total overhead costs
III. Change in estimated life of amortizable assets

• A) I only
• B) I and II only
• C) I and III only
• D) I, II, and III

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